OTCPK:RKNLF - Post by User
Comment by
west12on Feb 14, 2014 10:14am
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Post# 22209675
RE:Redknee is still a buy, says Cantor Fitzgerald Canada’s Kew
RE:Redknee is still a buy, says Cantor Fitzgerald Canada’s Kew Kew says Redknee’s Q1 provided confirmation that it is capitalizing on the opportunity to execute on license upgrades that the Nokia Siemens Networks pickup provided. He points to two recent wins, one in January, one in December, as evidence.
The Cantor Fitzgerald analyst thinks management’s goal to bring their business to mid-single digit EBITDA margins in the first year after the acquisition and then into the mid-teens in the twelve months after that is too conservative, noting that this, the third quarter of contributions from NSN, saw Redknee post margins of 9%.
In a research update to clients this morning, Kew maintained his BUY recommendation and $7.75 one year target on Redknee.